"I think you have to look at everything as a price to value, not just who has the best products or who might be best positioned but whose stock is also the best value," he said. "And I think there is still an unnatural and inappropriate overhang over General Motors stock relative to its value."

On "Fast Money," the former auto industry advisor to the Treasury Department under President Barack Obama said that the stock should be trading higher.

"It trades at a significant discount to Ford. I don't think that's warranted," he said. "I think GM is a great company. It has some things to prove over the next few months with its next product launches. But if you want to look for a great company with a stock that I believe is undervalued, that's where I would be looking."

StockMonster's Guy Adami said that his plays in the auto sector would be in names such as BorgWarner or American Axle.

"I think you stay away from the makers," he said. "I think you go downstream."

Trader disclosure: On April 2, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Brian Kelly is long GOLD; Brian Kelly is long SILVER; Brian Kelly is long TREASURIES; Brian Kelly is short S&P; Brian Kelly is short DAX; Brian Kelly is short EUROSTOXX; Tim Seymour is long AAPL; Tim Seymour is long C; Tim Seymour is long INTC; Tim Seymour is long SBUX; Tim Seymour is long VOD; Keith McCullough is long XLU; Keith McCullough is long TLT.